Question: Which is the correct equation to use as a starting point for finding the IRR of a project with these cash flows: Year Cash Flow
Which is the correct equation to use as a starting point for finding the IRR of a project with these cash flows:
| Year | Cash Flow | ||
| 0 | $ | -15,400 | |
| 1 | 7,300 | ||
| 2 | 9,100 | ||
| 3 | 5,900 | ||
a. 0 = (-15400 + 7300 + 9100 + 5900)/(1+IRR)^3
b. 0 = NPV * 7300/(1+IRR) + 9100/(1+IRR)^2 + 5900/(1+IRR)^3
c. None of the equations are helpful in finding the IRR
d. 0 =-15400 + 7300/(1+IRR) + 9100/(1+IRR)^2 + 5900/(1+IRR)^3
e. IRR =-15400 + 7300/(1+rocc) + 9100/(1+rocc)^2 + 5900/(1+rocc)^3
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